Energy
to innovate
For 130 years, Mersen has been bringing progress to life.
Inside Mersen
2023, A YEAR
OF TRANSFORMATION FOR THE GROUP
Back to the future
A CENTURY OF STEADY
RAMP-UP
In the air
Mersen, leading the way in energy transition markets
2 0 2 4 # 4
CONTENTS
EDITORIAL
"Our financial strength is an asset for meeting the challenges of the environmental transition"
LUC THEMELIN, CEO
In the air
6
8 Mersen poised and ready to take on all technological challenges
10 Upstream through downstream, excellence at every stage
12 Interview:
"The electric vehicle market is being driven by global demand"
Back
to the future
16 1913: Gennevilliers, the first steps of a future giant
18 1990s: an ability to anticipate market change
20 Entering the 21st century: bigger, further and more sustainable
Inside
Mersen
24 A transformation led by growth
28 Mersen on the road to success
30 Mersen, world expert in electrical power and advanced materials for high-tech industries
It's quite unusual to talk about financial results and the environment at the same time. The two are rarely linked in people's minds. But we at Mersen believe they
are. In fact, we believe our financial strength is an asset that will allow us to be a responsible player over the long term, capable of meeting the many challenges of the environmental transition. For many years now, our Group has been positioning itself in sustainable development markets, to the extent that they now account for 56% of our sales. And our new record results in 2023, with €1.2 billion in sales,
ENERGY TO INNOVATE IS A MAGAZINE PUBLISHED BY MERSEN - Tour Trinity, 1 bis place de La Défense, 92400 Courbevoie (France) - RCS Nanterre B572 060 333 - | |
Tel.: +33 (0)1 46 91 54 49 - www.mersen.com - Managing Editor: Luc Themelin - Chief Editor: Véronique Boca - Editorial Committee: Thomas Baumgartner, | |
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an operating margin before non-recurring items of 11.3% and a sharp rise in operating cash flow, are largely due to
M E R S E N E N E R G Y T O I N N O V A T E - # 4 | 3 |
EDITORIAL
the momentum of these growth markets.
Today, with this milestone reached in 2023, we are on track with our 2027 roadmap, which aims to reach sales
of €1.7 billion.
Exponential growth in demand
As you can read in this issue's feature on the energy transition, the world today is faced with many intersecting and conflicting challenges and issues. From the acceleration of extreme weather events to global tensions over energy
supply, the issues of strategic independence and renewable energy development
are on everyone's mind. At the same time, the continuing growth of the world's population, which is approaching 7 billion, and the rapid development of many countries will create even greater needs.
In other words, we're going to have to produce more energy, but energy that is greener.
And to achieve this, there's only one solution: investment. Investment to help manufacturers,
automakers and energy suppliers maintain their growth and respond to this increase in demand.
And that's where our financial strength is of paramount importance.
Investing for the future Mersen has a long history
in capital expenditure.
For over 130 years, we have been deploying the technical and human resources needed to fulfill our ambitions and stay one step ahead in all our markets. After several major acquisitions over the last decade, particularly in the United States, we continue to invest heavily in expanding our sites and increasing our production capacity in order
And, of course, we invest
in people. Over the next few years, several hundred new employees will join Mersen worldwide.
New backgrounds, new professions, new skills that will enhance our Group and enable us to participate more effectively in the major challenge that is the environmental transition.
So yes, Mersen is proud of its profitability. It's what allows us look to the future with optimism. It gives us the means to attract the best skills and acquire the best equipment. It guarantees that we can offer our employees around the world a working environment that is conducive to their personal
In the air
"For over 130 years,
we have been deploying the technical and human resources needed
to fulfill our ambitions and stay one step ahead in all our markets."
to keep pace with our industry-leading customers. Our medium-term plan includes €300 million in additional investments above our recurring level - a record amount that confirms
our determination to boost our efforts to meet our customers' needs.
development. Lastly, it allows us to adapt, to grow with our customers and to support their development by providing them with the quantities and quality they need for their products. Together, we are ready
to make the environmental transition a reality.
PROGRESS AND THE MERSEN SPIRIT GO TOGETHER WELL. SINCE ITS ORIGINS IN FRANCE IN 1889, THE GROUP HAS FACILITATED CHANGE IN SOCIETY. WHAT'S NEW TODAY AND FOR TOMORROW? SPOTLIGHT ON ENERGY TRANSITION MARKETS.
The energy transition: a market on the move p.6
Mersen poised and ready to take on all technological challenges p.8 Upstream through downstream, excellence at every stage p.10
Interview: "The electric vehicle market is being driven by global demand" p.12
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In the
air MERSEN, LEADING THE WAY IN ENERGY TRANSITION MARKETS
The energy transition: a market on the move
Faced with the threat of global warming, more and more action is being taken to support the energy transition. To meet the COP21 targets, however, some crucial challenges still need to be addressed.
How can we produce more energy while drastically reducing CO2 emissions globally?
This is the problem
that industry manufacturers will need to solve over the next few years in order
to simultaneously address the inexorable rise in the world's population
(10 billion people by 2050) - and the subsequent increase in energy requirements - and the critical need to cut carbon emissions on a global scale. "Contrary to what many people think, the energy transition doesn't necessarily mean producing less energy, but producing and consuming better," says Salvador Lamas, Vice President, Solutions for Power Management.
"It's an underlying trend that requires action on all
sources (wind, solar, hydro). Renewables have been growing at double-digit rates every year: so fast, in fact, that renewable electricity capacity expanded by 50% in 2023,
a trend that is expected to intensify in the coming years. "The trend is global," says Philippe Meunier, Senior Manager Strategic Marketing at Mersen, "and everyone has understood the importance of capturing it, starting with China, which now leads the rollout of renewable capacity, accounting for more than half of global additions each year. Just about everywhere, proactive public policies are being implemented to reduce the share of fossil fuels and increase the use of so-called"clean" energies."
Supporting power grid development
Total worldwide electricity production is expected to rise from
28,000 TW currently to 31,000 TW by 2030 and exceed 35,000 TW by 2035
The share of renewable energy in global production is set
to rise to 42% by 2028, from 29% in 2022
capacity and adapt the use of these intermittent energies in order to integrate them into the overall energy mix. As Pierric Gueguen, VP Global Strategic Marketing at Mersen, points out,
"If renewable energies are to replace fossil fuels in the long term, they will have to be available when and where they are needed, despite their intermittent nature, including in isolated areas with little or no supply from the grid." The development of power grids and the building of high-voltagedirect current (HVDC) lines to transmit electricity over long distances will be critical to meeting this challenge.
fronts - from production to consumption, including energy conversion, transmission and storage - and which therefore brings together a whole range of technologies and stakeholders, through to the end consumer, in pursuit of a single, common goal."
Double-digit growth The global energy crisis in 2022 and the rising number of extreme weather events have underscored the need to increase the production of energy from renewable
The complexity of the energy transition lies in the fact that it affects the entire ecosystem. A case in point is the fast- growing electric vehicle industry, which requires both cutting-edge technology and appropriate infrastructure, while at the same time striving to keep costs down to allow as many people as possible to benefit from the EV revolution. In addition to improving production, it's therefore also necessary to minimize losses, improve transmission, increase storage
"In 2023, renewable electricity capacity expanded by 50%."
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In the
air MERSEN, LEADING THE WAY IN ENERGY TRANSITION MARKETS
Mersen poised and ready to take on all technological challenges
Hydropower
Regular maintenance to ensure reliability
Conversion and transmission
Protecting systems and minimizing losses
Working for over 15 years alongside manufacturers who are making the energy transition a reality, Mersen has developed unique expertise for every need.
Solar power
Striving for efficiency
Hydropower accounted | Mersen assists industry | |
for 37% of total renewable | operators throughout the | |
electricity generation at the | life cycle of the power | |
end of 2022 and supplied | up | plants by providing |
to 75% of demand in some | them with solutions | |
countries like Brazil. While | dedicated to hydroelectric | |
hydro is undoubtedly the | generators (brushes, | |
most sustainable renewable | brushholders, slip-ring | |
energy source with facilities | assemblies) and services | |
that can operate for up to | to optimize facility | |
50 or even 100 years, dams | performance. | |
require sophisticated technical | ||
solutions adapted to their | ||
specific operating conditions | ||
(humidity, oil vapors, dust). |
Operators require conversion and transmission systems that are increasingly powerful and efficient in order
to distribute energy at the point of consumption and minimize losses. HVDC*
is a common technology that uses overhead transmission lines or submarine cables to transmit power from various sources (solar, wind) over long distances. The systems use converters to transform
alternating current into direct current and vice versa.
Mersen's products help to optimize the efficiency of the converters (interconnection busbars, cooling devices, power capacitors) and ensure the electrical protection of installations (fuses).
* High-voltage direct current.
With production capacity reaching nearly 450 GW in 2023 and an annual growth rate of 15%-20%, the solar market continues to expand, with China accounting for more than 85% of overall manufacturing capacity. The challenge facing the
new technologies aimed at improving solar cell efficiency.
Mersen has promoted the emergence of this market with high-end graphite and insulation felts for producing silicon ingots,
Storage
Making energy available when you need it
Wind power
The race for bigger and better
industry right now is to continue developing
the raw material of solar cells. It leverages proven expertise in delivering high value-added solutions, and also offers a host of products for the electrical protection of solar panels.
For intermittent renewable sources like solar and wind, storage solutions are critical to ensure that the energy is available at all times.
The industry is focusing on lithium-ion batteries, which have the advantage of being
Mersen's solutions provide electrical protection
of storage batteries (high- speed fuses) and improve connections between the cells or the modules (busbars).
Wind power production is steadily increasing, thanks to the boom in onshore and offshore wind capacity. The past few years have seen a push for ever-larger turbines and farms, but the market has now entered
a phase of technological stabilization, which should be accompanied by an improvement in power station performance.
Mersen supplies power generation and distribution products (brushes, brush-holders,slip-ring assemblies, signal transfer systems), as well as products for the protection of equipment (fuses, fusegears), and is recognized for its ability to provide innovative solutions to the wind power industry.
3,372 GW
of energy generated by renewable energies in 2022
both compact and safe, in addition to being able to efficiently manage peaks in energy demand.
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In the
air MERSEN, LEADING THE WAY IN ENERGY TRANSITION MARKETS
Upstream through downstream, excellence at every stage
Whether it's helping to boost renewable production capacity, minimizing losses during conversion and transmission, protecting equipment or improving storage capacity,
over the years Mersen has developed unique expertise for industrial companies actively involved in the energy transition.
RENEWABLEGENERATION ENERGY
ELECTRICAL PROTECTION | CONNECTION | POWER CONVERSION |
• Fuses and fusegear | • Busbars | • Cooling |
• Overvoltage protection | • High-speed fuses | |
• Overcurrent protection | • Capacitors | |
• Smart switches | • Busbars |
CONVERSION
ENERGYTRANSMISSION
AND
STORAGE
SOLUTIONS FOR | POWER TRANSMISSION |
HIGH-TEMPERATURE | • Motor brushes and brush-holders |
MANUFACTURING PROCESSES | |
• Pantograph strips | |
• Graphite furnace linings | • Signal and power transfer |
• Machined graphite parts | • Slip ring assemblies |
- Graphite and carbon components
- Graphite susceptors
- Furnace insulation
ENERGY | INFRASTRUCTURETRANSPORT |
AND |
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In the
air MERSEN, LEADING THE WAY IN ENERGY TRANSITION MARKETS
INTERVIEW
"The electric vehicle market is being driven by global demand"
Mersen's strength lies in its ability to supply products with consistent quality over several years, in the quantities needed by our customers."
OLIVIER RAYMOND, VICE PRESIDENT, GLOBAL SALES AND BUSINESS DEVELOPMENT, GRAPHITE SPECIALTIES
In just a few years, Mersen has emerged as a key partner to electric vehicle manufacturer suppliers, both upstream and downstream of the value chain. Philippe Griaud,
Vice President, Electric
Vehicles Business, and
Olivier Raymond, Vice
President, Global Sales
and Business Development,
Graphite Specialties,
discuss the reasons for this success and Mersen's growth prospects.
Is the electric revolution fully underway in the automotive sector?
Philippe Griaud: The shift from internal combustion engines to electric vehicles is driving a transformation, the likes of which the industry hasn't seen for decades. Under pressure from changing regulations, the major automakers have all joined the fray over the last few years, resulting in strong growth. This growth is expected to continue for quite some time, with global sales projected to rise from 14% today (20% in Europe) to 40% or 45% in 2030.
But beyond all the media hype and the windfall effect, the real question is how fast will the transition go. Olivier Raymond: It's also important to distinguish between all-electric vehicles, hybrids and plug-in hybrids that can be charged using a wall outlet and also run in full electric mode. The market isn't yet fully mature and is moving forward in fits and starts, which means that we need to anticipate developments in the short and medium term.
Are all-electric vehicles the future for Mersen? OR: If our aim is to move towards the model with the lowest carbon emissions, hybrid vehicles can only be transitional technologies. So, yes, in the long term, all-electricwill become the norm. But there are still some challenges to overcome, such as improving vehicle performance - and especially battery performance - making the vehicles more widely available and developing adequate charging infrastructure.
PG: It's a market where development depends on a wide range of stakeholders, not only manufacturers and energy suppliers, but also charging station installers and local authorities. For the shift to take place, the entire ecosystem needs to be up and running.
One of Mersen's distinctive features is that it's present both upstream and downstream of the value chain.
OR: Absolutely. Upstream, we supply isostatic graphite equipment and purified carbon insulation felts for the furnaces used in manufacturing silicon carbide (SiC) wafers.
These wafers serve as a base for the active elements contained in power semiconductors, which are used in converters that transform alternating current into direct current and vice versa. Our solutions are essential for the manufacture of SiC crystals at very high temperatures (2,400°C).
PG: Downstream, we have two standout product lines, particularly busbars, which are used in batteries and can be found in various electric vehicle modules. We have also developed a specific range of fuses for 400V and 800V batteries that appeal to many customers, including automakers, battery producers and power interconnector manufacturers.
What do customers want from Mersen?
OR: Our unique expertise, built up throughout our history. For decades we have been producing isostatic graphite
that is among the best in the world and helping manufacturers
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M E R S E N E N E R G Y T O I N N O V A T E - # 4 | 13 |
In the
air MERSEN, LEADING THE WAY IN ENERGY TRANSITION MARKETS
to produce wafers. These are highly complex processes that are difficult to control, where having products with lot-to-lot stability over several years is crucial so that they can be used almost in "plug and play" fashion. Tech leaders like Wolfspeed, onsemi, SiCrystal and SICC trust us because we can offer them this quality and stability, in addition to providing them with the quantities they need.
PG: Another of our strengths is being able to deliver tailor- made solutions. If we take busbars, for example, each model is co-developed with the customer in order to produce a customized battery module. That's one of the reasons why we were recently chosen by ACC, the joint venture between Stellantis, TotalEnergies/Saft and Mercedes-Benz, to support vehicle development at Peugeot, DS, Opel and Fiat. The goal is to deliver more than 10 million busbars over a seven-year period, with production starting in the middle of this year.
You address two rather different segments: how can you create synergies between the two? OR: Synergies are less about products and technologies
than about market vision and development. We're working on two branches of the same sector that aren't disconnected:
if manufacturers make certain technical or technological choices, there are bound to be consequences further up the chain.
So having a Mersen business unit whose core business is electric vehicles and with which we discuss on a regular basis helps us
to anticipate change and to adapt. Agility has always been one
of our assets.
PG: The automotive sector is extremely demanding and efforts to create solutions aligned with customer expectations contribute to the development of Mersen's technical expertise. For example, we have developed new high-speed manufacturing processes for busbars that have enabled us to divide production times by ten, while at the same time improving product robustness.
Back
to FROM FRENCH MANUFACTURER the OF CARBON ARC RODS TO GLOBAL
EXPERT IN ELECTRICAL POWER AND ADVANCED MATERIALS FOR HIGH-TECH INDUSTRIES, MERSEN HAS RISEN
TO PROMINENCE IN A GRADUAL, CONTROLLED AND CONFIDENT MANNER
futureTHANKS TO ITS STRATEGIC CHOICES AND INVESTMENTS.
1913: Gennevilliers, the first steps of a future giant p.16
1990s: an ability to anticipate market change p.18
Entering the 21st century: bigger, further and more sustainable p.20
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Back to the future
1913:
Gennevilliers, the first steps of a future giant
The crown jewel of the Group's innovation process, the Gennevilliers site is constantly changing to support research efforts and new production lines.
Top view of the construction project at the Le Carbone manufacturing site in Gennevilliers and a watercolor of one of the buildings.
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Aerial view of the Le Carbone Lorraine plant in Gennevilliers, 1950s-1960s.
1950
1913
1970
The Le Carbone Lorraine plant in Gennevilliers, 1948.
Continuous baking furnaces, | |||||
Gennevilliers, 1970. | |||||
A few years after it was created, | furnaces, making it one of the | Mersen's manufacturing base, | Gennevilliers site will continue | ||
Le Carbone chose a seven- | world's best equipped plants | where scores of innovative | to drive the Group's growth | ||
hectare site in Gennevilliers | for manufacturing carbon | products are designed. | in the years ahead, with new | ||
(France) as the location for | arc rods. Over time, the site | Henceforth specialized | production lines dedicated | ||
its new plant. The company | has expanded and evolved | in graphite solutions for | to the manufacture of silicon | ||
invested in brand-new | to become a key element of | high-tech applications, the | carbide (p-SiC®) substrates. |
M E R S E N E N E R G Y T O I N N O V A T E - # 4 | 17 |
Back to the future
1990s:
an ability to anticipate market change
In the 80s and early 90s, Mersen decided to invest in several sites in Europe and the United States to better assist local manufacturers in leading-edge industries.
1985
SAINT-BONNET-DE-
MURE (FRANCE)
Acquired in 1985, the Saint-Bonnet-de-Mure site has enabled Mersen to become
a world leader in electrical protection. Lying at the heart of an agreement between Mersen and ACC - the joint venture between Stellantis, Mercedes-Benz and TotalEnergies - the site continues to occupy a central position. Over the next few years, the Group will invest in new busbar production lines for the "new generation" batteries that will equip Europe's future electric vehicles.
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BAY CITY (USA)
Acquired in 1990, the Bay City plant engages in graphite machining and purification activities and silicon carbide (SiC) coating capabilities
for the semiconductor industry. These materials are highly acclaimed by participants
in the energy transition, and the Group has decided to expand the site to meet demand from major players like Wolfspeed.
1990
1991
ST MARYS (USA)
In 1991, Mersen acquired the Stackpole plant in
St Marys, where it decided to transfer its manufacturing operations of isostatic graphite for high temperatures.
Today, Mersen continues to invest in St Marys to further enhance its production capacity.
M E R S E N E N E R G Y T O I N N O V A T E - # 4 | 19 |
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Mersen SA published this content on 18 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2024 12:33:14 UTC.